According to analysts at multinational investment bank JP Morgan, alternative assets, which include cryptocurrencies, “should continue to perform phenomenally well in 2022.”
While Bitcoin is currently around u$s61,000, the prestigious bank predicted what the price of the leading cryptocurrency will be in 2022. Yesterday, it published a client report analyzing the current outlook for cryptocurrencies and its projections for the coming year.
According to the specialists in charge of the report, the target price for Bitcoin is u$s73,000, a projection that would represent an upside of about 17%. However, JP Morgan also differentiated the market price, driven by supply and demand, from what it considers the fair value of this cryptocurrency. Based on the prestigious investment bank’s own pricing model, the price would have to be u$s35,000, about 43% lower than its current value.
“This challenges the idea that a price target of u$s100,000 or more, which seems to be the current consensus for 2022, is a sustainable target for the cryptocurrency in the absence of a significant decrease in volatility,” they added. They further comment that although the current entry point looks unattractive, cryptoassets are on a “multi-year structural upswing.”
Nevertheless, it was also stated by JP Morgan’s strategists that a price target of u$s73,000 seems reasonable should the relative volatility continue into next year, but not the sky-high targets many expect.
The analysts concluded that the alternative asset class, which includes private debt and private equity, will return 11% next year, double the 5% gain from stocks and fixed income. However, they did not recommend crypto as a “core holding” due to its volatility.
What do you think about this report? Will crypto continue to rise next year? Leave a comment below.